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18 Cards in this Set
- Front
- Back
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Absorption costing
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Ass manufacturing costs, both fixed and variable, are assigned to units of product-units are said to fully absorb manufacturing costs.
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Job-order costing
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Used in situations where many different products are produced each period.
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Bill of materials
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A document that lists the type and quantity of each type of direct material needed to complete a unit of product.
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Materials requisition form
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A document that specifies the type and quantity of materials to be drawn form the storeroom and identifies the job that will be charged for the cost of the materials.
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Job cost sheet
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Records the materials, labor, and manufacturing overhead costs charged to that job.
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Allocation base
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Is a measure such as direct labor-hours, direct labor cost, machine-hours and (where a company has only a single product) units of product.
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Predetermined overhead rate
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Computed by: Est. total manufacturing overhead costs/Est total amount of allocation base.
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Overhead application
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The process of assigning overhead cost to jobs.
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Overhead applied
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OH applied per particular job = PDOR x Amount of allocation base incurred by the job.
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Normal cost system
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Applies overhead to jobs by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the jobs.
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Cost driver
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A factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs.
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Raw materials
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Include any materials that go into the final product.
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Work in Process
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Consists of units of product that are only partially complete and will require further work before they are ready for sale to the customer.
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Finished goods
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Consist of completed units of product that have not yet been sold to customers.
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Cost of goods manufactured
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Includes the manufacturing costs associated with the goods that were finished during the period.
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Schedule of cost of goods manufactured
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Contains three elements of product costs -- direct materials, direct labor, and manufacturing overhead -- and it summarizes the proportions of Work in Process into Finished Goods.
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Schedule of cost of goods sold
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Contains three elements of product costs -- DM, DL, MOH -- summarizes the proportions of those costs that remain in ending FG inventory. Transferred out of FG into COGS.
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Plantwide overhead rate
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Single predetermined overhead rate for the entire factory (used for small factories only).
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